uploads///flr pm

Fluor Corporation’s Revenue Fell while Income Rose in 3Q15

By

Nov. 20 2020, Updated 5:06 p.m. ET

Fluor Corporation’s price movement

Fluor Corporation (FLR) has a market cap of $6.8 billion. Its stock has been falling quarter-over-quarter in 2015. After the company’s 3Q15 earnings report, which showed an 8.8% drop in revenue, FLR fell by 1.4% to close at $46.55 per share on October 29, 2015. Its price movements on weekly, monthly, and YTD bases are 2.7%, 9.9%, and -22.3%, respectively.

Technically, FLR has broken the support of 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, it’s trading 2.3% above its 20-day moving average, 4.4% above its 50-day moving average, and 11.2% below its 200-day moving average.

Article continues below advertisement

The First Trust ISE Global Construction and Engineering ETF (FLM) invests 3.0% of its holdings in Fluor. The ETF tracks an index of global construction and engineering companies weighted in tiers spanning the entire market cap spectrum. FLM’s YTD price movement was 3.4% as of October 28, 2015. The Guggenheim S&P 500 Pure Value ETF (RPV) invests 0.92% of its holdings in Fluor.

Below are Fluor Corporation’s competitors and their market caps:

  • Jacobs Engineering Group (JEC)—$4.8 million
  • AECOM (ACM)—$4.4 billion
  • Quanta Services (PWR)—$4.1 billion
  • KBR (KBR)—$2.6 billion

FLR’s performance in 3Q15

The company reported net revenue of $4,384.6 million in 3Q15, a fall of 8.8% when compared to its net revenue of $4,810.1 million in 2Q15. Revenues from its Oil & Gas, Industrial & Infrastructure, and Global Services sectors fell by 12.5%, 14.1%, and 4.1%, respectively. Revenues from FLR’s Government and Power sectors rose by 9.6% and 7.4%, respectively, in 3Q15. The cost of revenue as a percentage of revenue rose by 1.1% in 3Q15. The company’s 3Q15 net income and EPS (earnings per share) rose 13.1% and 17%, respectively, on a quarter-over-quarter basis to $181.7 million and $1.17, respectively. FLR’s current ratio fell to 1.8, and its long-term debt-to-equity ratio rose to 0.32 in 3Q15 as compared to its current ratio and long-term debt-to-equity ratio of 1.9 and 0.31, respectively, in 2Q15.

Below are some of Fluor Corporation’s key activities in 3Q15:

Article continues below advertisement
  • The company announced a quarterly cash dividend of $0.21 per share on its common stock.
  • The company signed an agreement to divest 50% of shares in its Spanish operations, Fluor S.A., to Sacyr Industrial S.L.U.
  • Fluor Corporation and Offshore Oil Engineering Co. (COOEC), a subsidiary of China National Offshore Oil Corporation, have agreed to form a joint venture, COOEC Fluor Heavy Industries Co. (CFHI), to own, operate, and manage the Zhuhai Fabrication Yard in China’s Guangdong province.
  • The Department of Homeland Security’s Federal Emergency Management Agency (FEMA) gave a contract to Fluor Corporation to provide architectural and engineering services to support disaster-related operations in Texas following the severe thunderstorms, tornadoes, and flooding that swept through the state in May 2015.
  • PTT Global Chemicals Public Company (PTTGC) selected a Fluor Corporation-led team to perform front-end engineering and design work for a proposed petrochemical complex in Belmont County, Ohio.
  • The US Army has selected Fluor Corporation as the Logistics Civil Augmentation Program (LOGCAP) IV contractor to provide regional forward planning support for Africa Command, to include the countries within Africa, the African Union, and African regional security organizations, as well as Southern Command, to include Central America, South America, and the Caribbean.
  • The company has signed a three-year agreement with Sasol Group Technology to perform a range of projects as an integrated team at Sasol’s facilities in Secunda and Sasolburg, South Africa.

About Fluor Corporation

Fluor Corporation is one of the largest engineering, procurement, construction, maintenance, and project management companies in the world. It designs, constructs, and maintains complex and challenging projects in different industries.

Advertisement

More From Market Realist